Microsoft Shares a Bit More Source

By Peter Galli  |  Posted 2003-12-03 Print this article Print

Microsoft broadens its intellectual property licensing, and adds two new IP licensing programs: one for its ClearType technology and the other for its FAT file system.

Microsoft Corp. is streamlining its licensing programs in a move designed to make more of its intellectual property portfolio broadly available to its partners and competitors. The Redmond, Wash., software giant on Wednesday will also announce two new IP licensing programs: one for its ClearType technology, which allows text to be read on an LCD monitor in a crisper way, and the other for Microsofts File Allocation Table (FAT) file system. Other companies now will be able to build their own implementations of ClearType and bring it out on other platforms and non-Windows devices under the terms of the license, which is not being made available.
Brad Smith, Microsofts senior vice president and general counsel, and Marshall Phelps, a Microsoft corporate vice president and deputy general counsel for intellectual property, will announce these moves at a media teleconference Wednesday morning.
In an interview with eWEEK ahead of the teleconference, Phelps said the new policy deals with both royalty-bearing and royalty-free use of the companys intellectual property, and will be a balance of both. But he stressed that Microsoft has no intention of licensing these, or other, technologies to the open-source community on a royalty-free basis as "our goal is to treat everyone the same way." "The point is that pricing has to be consistent and we cant treat one class of competitors differently from another and still have a rational licensing program going forward," he said. David Kaefer, director of business development in Microsofts IP licensing group, told eWEEK that Microsoft feels its intellectual property has value and the test of that will be if people take licenses. "The proof is in the pudding, and this is the first step for us. We very much want to create these programs in an attractive way at a price point that is viewed as valuable, and the proof will be whether people take it up," he said. Phelps added that there will also be an expansion of Microsofts efforts in areas where the IP it puts out is not priced. "The standards and academic worlds are both part of that scenario, and there will be other scenarios where sharing it is in the general good. But we are not going to give it all away for free—that is not the goal," he said. Next page: Is Microsoft at an inflection point?

Peter Galli has been a financial/technology reporter for 12 years at leading publications in South Africa, the UK and the US. He has been Investment Editor of South Africa's Business Day Newspaper, the sister publication of the Financial Times of London.

He was also Group Financial Communications Manager for First National Bank, the second largest banking group in South Africa before moving on to become Executive News Editor of Business Report, the largest daily financial newspaper in South Africa, owned by the global Independent Newspapers group.

He was responsible for a national reporting team of 20 based in four bureaus. He also edited and contributed to its weekly technology page, and launched a financial and technology radio service supplying daily news bulletins to the national broadcaster, the South African Broadcasting Corporation, which were then distributed to some 50 radio stations across the country.

He was then transferred to San Francisco as Business Report's U.S. Correspondent to cover Silicon Valley, trade and finance between the US, Europe and emerging markets like South Africa. After serving that role for more than two years, he joined eWeek as a Senior Editor, covering software platforms in August 2000.

He has comprehensively covered Microsoft and its Windows and .Net platforms, as well as the many legal challenges it has faced. He has also focused on Sun Microsystems and its Solaris operating environment, Java and Unix offerings. He covers developments in the open source community, particularly around the Linux kernel and the effects it will have on the enterprise.

He has written extensively about new products for the Linux and Unix platforms, the development of open standards and critically looked at the potential Linux has to offer an alternative operating system and platform to Windows, .Net and Unix-based solutions like Solaris.

His interviews with senior industry executives include Microsoft CEO Steve Ballmer, Linus Torvalds, the original developer of the Linux operating system, Sun CEO Scot McNealy, and Bill Zeitler, a senior vice president at IBM.

For numerous examples of his writing you can search under his name at the eWEEK Website at


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